Most online businesses in Australia start small: a skill people will pay for, a product idea, or a side hustle that has started bringing in regular money. Picking the idea is the easy part. The setup is where people get caught out, usually with an ABN they never applied for, GST they never charged, or platform income the ATO already knows about.
This guide covers ten online business ideas briefly, then spends most of its time on the setup and tax side for the 2025-26 and 2026-27 income years: ABN, business name, GST, platform reporting, hobby versus business, and record keeping. Figures were checked against the ATO, ASIC and business.gov.au on 9 October 2026.
It is written for side hustlers, sole traders and first-time founders selling online. If you had an ABN for an earlier venture, our guide to reactivating an ABN explains how to switch it back on.
Key takeaways
- An ABN is for people carrying on or starting an enterprise. A hobby with no profit motive is not entitled to one.
- GST registration is required once GST turnover reaches $75,000, and you have 21 days to register.
- From 1 July 2026 a business name costs $47 for 1 year or $108 for 3 years, unless you trade under your own name.
- Platforms report seller income to the ATO twice a year, covering all reportable transactions since 1 July 2024.
- Keep most business records for 5 years, in English or easily converted to English.
- Free products from brands in return for promotion are generally assessable at market value if you are in business.
Online business setup at a glance
| Obligation | When it applies | Key figure or deadline |
|---|---|---|
| ABN | You are carrying on or starting an enterprise | Apply online with the Australian Business Register |
| Business name | You trade under a name other than your own | $47 (1 year) or $108 (3 years) from 1 July 2026 |
| GST registration | GST turnover reaches $75,000 (current or projected) | Register within 21 days |
| Activity statements (BAS) | Once you are registered for GST | Lodge for each reporting period |
| Platform reporting (SERR) | You sell through an electronic distribution platform | Platforms report by 31 January and 31 July |
| Record keeping | From your first sale | Keep most records for 5 years |
Source: ABR ABN entitlement, ATO registering for GST, business.gov.au changes from 1 July 2026, ATO SERR and ATO record keeping rules, checked 9 October 2026.
Which online business ideas suit Australia?
There is no single best idea. The right one matches a skill you already have, sells to customers who already buy that category online, and still leaves a margin after platform fees, advertising, refunds and tax. The table below keeps each idea short and flags the setup point that most often trips people up.
| Idea | What it involves | Setup or tax point to check |
|---|---|---|
| Ecommerce store | Selling your own products through your own website | All sales count toward GST turnover; track stock and refunds |
| Dropshipping | A supplier ships orders on your behalf | Keep supplier invoices and fees; margins can be thin |
| Freelance services | Writing, design, web support, video editing | ABN, invoicing and whether personal services income rules apply |
| Online coaching or consulting | Selling advice or sessions by video call | Clear engagement terms and income records per client |
| Online courses and digital products | Courses, templates, e-books, memberships | Sales count toward GST turnover; keep platform payout reports |
| Content creation and affiliate income | Video, blogs, newsletters, social channels | Brand gifts and foreign ad payments still count |
| Virtual assistant services | Admin, inbox and scheduling for other businesses | ABN and confidentiality terms for client data |
| Digital marketing agency | SEO, ads and social media for clients | Contractor payments and withholding if no ABN is quoted |
| Software or app | A product sold by subscription or licence | Structure, ownership of code and records of development costs |
| Subscription business | Recurring boxes, memberships or services | Recurring billing, refunds and timing of GST once registered |
If you are paying freelancers, note that if a supplier does not quote an ABN on a payment over $75 (excluding GST) you generally have to withhold 47% unless an exception applies. For freelancers themselves, our guide to personal services income explains when those rules limit deductions.
Is it a hobby or a business?
This question drives most of what follows. The ATO describes a business as a set of continuous and repeated activities carried on to make a profit. A hobby or recreation from which you do not seek to profit is not a business, and neither is a one-off transaction.
The ATO indicators include:
- whether you intend to be in business and have a prospect of profit
- whether the size or scale is enough to make a profit
- whether the activities are repeated and continuous
- whether you run it in a businesslike way, for example with records, a separate bank account, advertising, a business plan or an ABN
When does the business start?
A business starts once you have made the decision, acquired the minimum assets you need and begun business activities. An intention alone is not enough. For content creators, the ATO says a business generally starts once you move from planning to actively creating content to earn income.
Not being in business does not make all income tax-free. Hobby receipts are generally not assessable, but some payments still are, such as a one-off fee for providing a service. The ATO gives the example of a $500 hotel payment for a blog post.
Do you need an ABN for an online business?
Under the ABR entitlement rules, you can get an ABN if you are carrying on or starting an enterprise in Australia. If the business is not yet trading, you should be able to show commencement steps such as marketing, licences, insurance or finance applications.
An ABN identifies the business. It is not a replacement for your tax file number, and sole traders still report business income in their individual tax return. Our explainer on ABN vs TFN covers the difference.
Do you need to register a business name?
According to ASIC, you must register a business name if you trade under a name other than your own. Sole traders using their own first name and surname do not need one, and nor does a company trading under its exact company name. You need an ABN, or an ABN application reference, to register.
From 1 July 2026 the fee is $47 for 1 year or $108 for 3 years, up from $45 and $104 (business.gov.au). Registration stops another business using an identical or nearly identical name, but it does not give you trade mark protection. Our guide to business name registration walks through the steps.
When do you have to register for GST?
The ATO GST registration rules apply the same way online and offline. You must register once your GST turnover reaches $75,000 ($150,000 for non-profits), and you have 21 days to do it. There are two tests:
- Current GST turnover: this month plus the previous 11 months.
- Projected GST turnover: this month plus the next 11 months, if that total is likely to reach $75,000.
Taxi and ride-sourcing drivers must register regardless of turnover. You can also register voluntarily, but you generally need to stay registered for at least 12 months. For content creators, GST-free sales such as payments from foreign advertising networks still count toward the threshold.
Once registered you lodge activity statements. Our GST registration guide and BAS guide go further, or our team can handle the GST registration for your business.
Worked example: an online store crossing the GST threshold
Mia sells printed t-shirts through her own website. She is not registered for GST.
At the end of August 2026 her sales for the previous 12 months total $73,000. That is under $75,000, and she does not expect the next 12 months to be higher, so she does not need to register yet.
In September 2026 she sells $7,300 of shirts. Her sales from October 2025 to August 2026 (the previous 11 months) were $68,900.
Current GST turnover at the end of September: $68,900 + $7,300 = $76,200. That is $1,200 over the threshold, so she must register within 21 days.
After registering, a $44 shirt includes $4 of GST ($44 / 11 = $4). Mia keeps $40 before costs, so she reviews her prices and margins before the next order run.
What do online platforms report to the ATO?
Under the Sharing Economy Reporting Regime, operators of electronic distribution platforms report information about sellers whose payments flow through the platform. Taxi, ride-sourcing and short-term accommodation transactions have been reported since 1 July 2023. All other reportable transactions have been reported since 1 July 2024.
Reports are due twice a year: by 31 January for July to December, and by 31 July for January to June. The ATO has said it matches platform data against tax returns and activity statements to find unreported income, so declare everything, including income from overseas platforms.
What records should an online business keep?
The ATO record keeping rules say most records must be kept for 5 years, generally from when the record was prepared or obtained or the transaction was completed, whichever is later. Records must be in English or easily converted to English.
- sales invoices and platform payout reports, including fees deducted
- supplier invoices, receipts and bank statements
- records of any choices or calculations, such as how you worked out a business-use percentage
- evidence of the business portion of mixed-use items like a phone or laptop
- for content creators, the market value of products or trips received from brands
Electronic records are fine, but they must be protected from change and you must be able to reproduce them if you change systems.
Rule of thumb: If an activity is regular, organised and aimed at profit, set it up as a business from the first sale: ABN, separate bank account, accounting software and a monthly check of your GST turnover.
Should you start as a sole trader or a company?
Most online businesses start as sole traders because setup is simple and cheap. A company adds separate legal identity and ongoing ASIC obligations, with registration costing $636 from 1 July 2026. Our guides on moving from sole trader to company and company registration costs explain the trade-offs. Stock-based sellers can also look at our ecommerce accounting support.
Common mistakes when starting an online business
- Waiting until tax time: check your GST turnover every month, not once a year.
- Treating platform income as private: platforms report to the ATO, so undeclared income is easy to find.
- Ignoring non-cash income: free products or trips received for promotion are generally assessable at market value.
- Mixing personal and business money: a separate account makes records and deductions far easier to support.
- Using a business name without registering it: if it is not your own name, register it with ASIC first.
FAQ about starting an online business in Australia
Do I need an ABN to sell online in Australia?
You are entitled to an ABN if you are carrying on or starting an enterprise. Regular, organised selling with a profit motive usually meets that test. A one-off sale of personal items or a hobby with no intention to profit does not. If you are unsure, look at the ATO indicators such as repetition, scale, business planning and record keeping before you apply.
When do I have to register for GST as an online seller?
You must register once your GST turnover reaches $75,000, measured on the current month plus the previous 11 months, or the current month plus the next 11 months if that is likely to reach $75,000. You then have 21 days to register. Taxi and ride-sourcing drivers must register from their first dollar.
Does the ATO know about my platform income?
Very likely. Under the Sharing Economy Reporting Regime, operators of electronic distribution platforms report seller information to the ATO twice a year. Ride-sourcing and short-term accommodation have been reported since 1 July 2023 and all other reportable transactions since 1 July 2024. The ATO matches this data against tax returns and activity statements.
Is income from a hobby taxable?
Hobby receipts are generally not assessable and related expenses are generally not deductible. That changes once the activity becomes a business, for example when you start earning regular platform income with a plan to profit. Some payments are taxable even if you are not in business, such as a one-off fee for providing a service.
How long do I need to keep records for an online business?
Most business records must be kept for five years, generally from when the record was prepared or obtained or the transaction was completed, whichever is later. Records must be in English or easily converted to English, and electronic records must be protected from change. Companies have separate ASIC record keeping rules as well.
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Nanak Accountants can help you set up an online business properly from day one, including ABN and business name registration, GST, bookkeeping and your first tax return. Call 1300 626 258 or book a free 15-minute discovery meeting. You can also learn more about Nanak Accountants.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO, ABR, ASIC and business.gov.au pages linked above on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
